Following the huge £100M IPO of upstart investment firm, Arix, it has emerged that it counts with none other than this maverick in biotech investment.
Arix has been busy wrapping up its whopping IPO, followed closely by a deal with Takeda. New financial details have been disclosed about the new biotech investment firm’s underpinnings: almost one third of the company is owned by none other than the legendary Neil Woodford. His stake is reportedly 32.8%, or £60.7M (€70.2M) — a large stake for a private investor in a public company.
Woodford is one of the most closely watched investors in the UK, having identified a number of future biotech success stories while they were still in their early days. His portfolio counts with Immunocore, PsiOxus and 4D Pharma, and his fund has reached £16B (€18.5B) fund since its foundation in 2014.
Woodford is also launching a new fund, the Woodford Income Focus, and as its name suggests, it aims for higher incomes than the current Woodford Equity Income fund. It’s not yet clear if Income Focus will be as tobacco- and healthcare-oriented as its Equity counterpart, but he made his interest in biotech clear with his record-breaking €800M investment in 2015.
What we do know is that “the current Woodford Equity Income fund is focused on total return, so it looks for income and capital growth, as well as income growth,” explained Adrian Lowcock of Architas to The Telegraph. “This will be those in retirement or very close who need to maximise their yields and are willing to sacrifice some capital growth.”
While advice is swirling about whether or not to sell stock in the old fund and buy into the new one, Lowcock admits the fuss might be for nothing: “You have got ‘key person risk’ here, as there is always is with these big star names,” he told The Telegraph. That said, it’s hard to argue with his ‘outstanding record‘ regarding performance delivery, and it seems that he has identified Arix as the next big ticket to success.
Images from Woodfordfunds.com, bioraven/shutterstock.com